Psychedelic pipeline moves toward proof of concept

Enthusiasm for psychedelic drugs as tools to treat depression and other mental health conditions has led to a deluge of new companies exploring the psychotropic space — from classic psychedelics such as “magic mushrooms” and LSD to lesser-known and newly invented tryptamines and empathogens. Among these, psilocybin-based product candidates are the most abundant, and some of the most advanced. They also showcase the difficulties of the business model and possible workarounds.

Over two dozen companies have disclosed a psilocybin program. Many of them are testing psilocybin itself, at least initially, relying on their formulation technology, manufacturing process or chemical tweaks to gain IP, but staying close enough to the natural product to take advantage of the warming public and investor sentiment around psychedelics, and, in some cases, to skip Phase I trials and go straight to Phase II...